Bitcoin price analysis: BTC swiftly drops to $39,000, higher low set?

TL;DR Breakdown

• Bitcoin price analysis is bullish today.
• BTC/USD saw further decline yesterday.
• Support found around $39,000 overnight.

Bitcoin price analysis is bullish today as we expect reversal from the $39,000 support to follow after more selling was seen yesterday. Likely BTC/USD sellers are now exhausted, and bulls are ready to take over again.

The market has continued to decline over the last 24 hours. Bitcoin lost 3.53 percent, while Ethereum 1.18 percent. Terra (LUNA) is the worst performer from the majors, with a loss of almost 7 percent, while Ripple (XRP) has moved against the overall trend, with a gain of 3.8 percent.

Bitcoin price movement in the last 24 hours: Bitcoin breaks through $42,000, finds support at $39,000

BTC/USD traded in a range of $38,777.04 – $40,927.36, indicating substantial volatility over the last 24 hours. Trading volume has declined by over 22 percent, totaling $23.6 billion. The total market cap declined to $743.23 billion, resulting in a dominance of 42.25 percent.

BTC/USD 4-hour chart: BTC stops at $39,000

On the 4-hour chart, we can see the Bitcoin price starting to pivot higher as no further downside can be reached since late yesterday.

Bitcoin market structure has seen a change in direction this week. After quick retracement to $37,000 at the end of February, a strong push higher was seen over the next 24 hours.

BTC/USD peaked at around $45,600 after over a 22 percent rally, indicating very bullish sentiment. Later in the week, consolidation formed, leading to a slow reversal back to the downside as bulls were finally exhausted.

On Thursday strong push lower began the retracement, resulting in a swift move towards the previous resistance area around $39,500. Late yesterday, support was finally found at $39,000, leading to think that the retracement has ended.

Bitcoin price should see a reversal from the current area later in the weekend, meaning a higher low is set once again. Overall, unless further downside is reached over the next 24 hours, we expect BTC/USD to start moving higher once again, likely starting next week with another rally.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bullish today as the market has seen strong support at $39,000 after further selling yesterday. Therefore, BTC/USD has likely set another higher low and is now ready to continue higher.

While waiting for Ethereum to move further, see our articles on how to buy land in Metaverse, How to close a Coinbase account, and how to transfer crypto from Coinbase to Robinhood.

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• Source: https://www.cryptopolitan.com/bitcoin-price-analysis-2022-03-05/